Nasdaq set to confirm correction as AI spending worries mount
· Business · Reuters, Investing.com
Nasdaq is expected to close lower as investors react to heightened concerns about AI sector spending, prompting a broader market pullback. The tech-heavy index posted its sharpest single‑day decline in months, driven by disappointing earnings forecasts from leading AI chipmakers. Analysts warn that weakened demand for AI infrastructure could weigh on growth expectations across the technology stack. The correction comes amid a broader reassessment of AI’s near‑term profitability and raises questions about the sustainability of current valuations. Nasdaq futures indicate a lower open for Thursday, with the S &P 500 also projected to decline modestly. The market’s reaction signals that concerns about AI spending are increasingly influencing overall equity sentiment.
Why it matters
The shift in investor sentiment could affect the funding and expansion plans of Indian tech firms and startups that rely on AI infrastructure, potentially slowing adoption and cloud spending. Indian companies listed on US exchanges may see their valuations impacted, influencing capital flows and market confidence for domestic investors. Additionally, the broader market correction could affect Indian mutual funds with US exposure, as they face redemption pressure and portfolio rebalancing amid he
Read the original report — Reuters
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